A judge ruled Friday that the Scranton Redevelopment Authority must pay $119,000 in legal fees to an attorney who represented a pair of clients who fought condemnation of their buildings and won.
Lackawanna County Judge Robert Mazzoni ordered the SRA to pay attorney Boyd Hughes $119,000 of the $128,000 in legal fees that he and his firm, Hughes, Nicholls and O'Hara of Dunmore, had billed their clients during their six-year battle against SRA condemnation of their buildings on Lackawanna Avenue.
The case stemmed from 2006, when the SRA moved to condemn and take the properties of Mario and Giuseppina Piccolino, owners of Buona Pizza at 504 Lackawanna Ave., and Stanley and Susan Stadolny, owners of 506 Lackawanna Ave., for a project known as the "Renaissance at 500" in the 500 block of Lackawanna Avenue.
The SRA argued the properties were blighted, but in fighting the condemnation, the property owners argued the SRA had failed to follow state law on condemnation procedures and lacked the power to condemn the two properties. The redevelopment plan had listed the lots as "not to be acquired" and the SRA failed to amend the plan in a timely manner to include the lots, the owners contended.
In a January 2011 ruling, Judge Mazzoni agreed with the property owners that the SRA lacked the power to condemn the lots and arbitrarily tried to condemn them. The SRA then appealed to Commonwealth Court, which in a February 2012 ruling upheld Judge Mazzoni's decision.
In March, the SRA voted against appealing the case. The case was effectively closed, but the fight continued as Mr. Hughes filed a petition in court to have the SRA pay the $128,000 in legal fees that his firm had accrued over the years in the condemnation litigation.
In opposing Mr. Hughes' request for his legal bills to be paid by the SRA, that agency raised various arguments that were largely technical in nature, including that some invoices lacked dates of when work was performed and that spouses who also were building owners had not signed the retainers hiring Mr. Hughes.
Judge Mazzoni rejected those arguments. Though he disqualified for various reasons around $9,000 in legal bills that Mr. Hughes was seeking, Judge Mazzoni cited state law that provides for reasonable attorney's fees to the prevailing party, and ordered that as the victor in the case, Mr. Hughes and his clients were entitled to have the bulk of the legal fees, $119,000, paid by the SRA.
"There is little doubt that petitioners are entitled to fees and costs," and the only question then was what constituted a reasonable amount, Judge Mazzoni stated.
The reasonableness of Mr. Hughes' bills "were essentially uncontested" by the SRA, and Mr. Hughes' hours expended and rates were reasonable, the judge ruled.
Mr. Hughes said in a phone interview, "I'm pleased for the Stadolnys and Piccolinos in retaining me to fight the SRA on this, which was important. I'm glad for the ruling."
Mr. Hughes, who was a former SRA solicitor, said he knew right away the condemnation was amiss, because the redevelopment plan had not been amended, the pizzeria was not vacant and the effort appeared to be an improper "spot condemnation." He said the SRA probably could have negotiated a deal with his clients that would have avoided the lengthy condemnation battle.
Friday's ruling against the SRA means the failed condemnation now has cost the SRA some $278,000 in legal fees for attorneys on both sides, according to public records from the agency and the court.
That's because SRA attorney Carl Greco billed the SRA some $159,000 from 2006 through September for his legal work in connection with the condemnation of the two properties, and of that had been paid $157,000 through August, according to bills he submitted to the SRA that were obtained by The Times-Tribune through a Right-to-Know request for public records.
But it's still not over. Mr. Hughes said he now also is entitled to have the SRA pay his bills that were incurred after the Commonwealth Court ruling in February and during the legal fight to have his prior bills paid.
The new amount his firm has incurred after February was not immediately available, but he said he is going to submit that bill to the SRA, too, and if necessary to the court, for payment.
"We're going to get paid for everything they put us through on this. We haven't lost a case yet against them, and we're not going to lose this one," Mr. Hughes said.
Efforts to reach SRA Chairman William Lazor were unsuccessful.
Mr. Hughes has been solicitor for Scranton City Council during the past two years. His representation of the building owners in their fight against condemnation was unrelated to his job as council solicitor.
Contact the writer: jlockwood@timesshamrock.com.